Profitability analysis
ConocoPhillips’ total revenues and other income reached $58.6 billion, $82.2 billion and $48.3 billion in 2023, 2022 and 2021, respectively.
Total revenues and other income in 2023 were down 28.7% year-on-year.
Total revenues and other income in 2022 were up 70% year-on-year.
Net income was $11 billion, $18.7 billion and $8 billion in 2023, 2022 and 2021, respectively.
Net profit margin was 18.8%, 22.7% and 16.6% in 2023, 2022 and 2021, respectively.
The company’s results of operations are largely depend on oil prices
Cash flow analysis
Net cash provided by operating activities was $20 billion, $28.3 billion and $17 billion in 2023, 2022 and 2021, respectively.
At first glance, you may be excited, because ConocoPhillips’ cash flow is very strong.
Take another look, you may be disappointed, because the corporation ‘s capital expenditures were very high.
Capital expenditures and investments were $11.2 billion, $10.16 billion and $5.3 billion in 2023, 2022 and 2021, respectively.
Free cash flow was $8.8 billion, $18.14 billion and $11.7 billion in 2023, 2022 and 2021, respectively.
Repurchases of company common stock were $5.4 billion, $9.3 billion and $3.6 billion in 2023, 2022 and 2021, respectively.
Dividends paid were $5.5 billion, $5.7 billion and $2.36 billion in 2023, 2022 and 2021, respectively.
We think that the amount of repurchasing stock and dividends paid to shareholders is real money.
We reckon that the amount of repurchasing stock and dividends paid to shareholders is about $10 billion each year.
Balance sheet analysis
ConocoPhillips’ total assets $96 billion and $93.8 billion in 2023 and 2022，respectively。
Net properties, plants and equipment were $70 billion at December 31, 2023, accounting for 73% of total assets.
Total current assets were $14.3 billion at December 31.
Total current liabilities were $10 billion at December 31.
The current ratio was 1.43 for 2023.
Total liabilities was $46.6 billion at December 31, 2023.
The debt ratio was 48.5% for 2023.
The balance sheet was very healthy.
Conclusion
ConocoPhillips’ stock price is $129.53 per share, which is equivalent to $152.27 billion in market capitalization.
We reckon that the reasonable market price is about $100 billion, so ConocoPhillips’ market capitalization is overvalued by about $50 billion or 30%.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
ConocoPhillips is an independent E&P company headquartered in Houston, Texas with operations and activities in 13 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; LNG developments; oil sands in Canada; and an inventory of global exploration prospects. On December 31, 2023, we employed approximately 9,900 people worldwide and had total assets of about $96 billion. Total company production for the year was 1,826 MBOED.
ConocoPhillips was incorporated in the state of Delaware in 2001, in connection with, and in anticipation of, the merger between Conoco Inc. and Phillips Petroleum Company. The merger between Conoco and Phillips was consummated on August 30, 2002. In April 2012, ConocoPhillips completed the separation of the downstream business into an independent, publicly traded energy company, Phillips 66.
